China Debt Collection No Longer Mission Impossible - Thanks To The China Trade Commission.

Online, July 31, 2011 (Newswire.com) - Today the China Trade Commission announced its new accelerated international debt collection service designed to enhance the current procedure which is already 87% effective since 2009. The new enhancement involves publication of payment histories and delinquencies on-line on an International "Debtor Database" of individuals and businesses from China, America, Canada, Australia, and the U.K. According to CTC Executive Director Anthony DeMarco "People generally value their good name and reputation of their company. I think they will do their best to stay off this database by complying with their credit and payment terms". Traditionally Asian have always been very concerned about "saving face".

Although the CTC has maintained the debtor database since 2002 as a due diligence resource, this is the first time it will be published on line for it members and the public to see. Already the database contains over 300,000 claims spanning over 7,800 pages in alphabetical order from five nations all involved in China business dealings. "This database makes it easier to spot the bad apples and substantially reduce business risks", added CTC Public Affairs Director Paul Zhang. The CTC will remove the listings as debts are reconciled and paid off in full.

So far the only people complaining about the new collection and due diligence tool are the debtor's themselves. Debts as small as $1,000 can be added to the database by anyone who has documented proof of a legitimate unpaid debt. "It is our hope that this new strategy will help boost our collection success rate over 90%" remarked DeMarco. Over 20,000 merchants and entrepreneurs rely on the CTC for their international collections, most probably because the CTC fees are mostly contingent upon success in collecting.

Generally, all collections involve three types of debtors; 1) Those who legitimately owe a debt and refuse to pay, 2) Those who owe a legitimate debt and are no longer able to pay, and 3) Those who dispute a debt and refuse to pay until the dispute is resolved. In the case of the latter situation, the CTC also offers professional billing audits and arbitration services.

In China alone, the CTC estimate that over $5Billion USD of commercial receivable accounts are delinquent by more than 30 days at present , which represents over $100 million of lost interest earnings every day."Our goal is to keep buyers and sellers happy and honest with each other", explained DeMarco. Considering that the CTC has successfully arbitrated over 3,000 cases since 1996, and collected over $12 Billion USD for merchants over the same time span, it is safe to say the CTC is succeeding, where many others have failed.

Eventually China will develop a UCC claim system that really works impartially. Until then there is the China Trade Commission which prides itself on integrity and objective conflict resolution.